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Mortgage Broker News | 11 Jan 2013, 07:00 AM Agree 0
A slowing market will grow the number of trailer fee transactions as brokers confront a spike in rock-bottom renewal rates – an effort on the part of some lenders to block switches, they charge.
  • KL | 12 Jan 2013, 04:50 AM Agree 0
    While the trailor is not everyone's cup of tea there is no doubt it is becoming more familiar. The switches have been made much more difficult by our friends at Scotia and TD. As you are all aware, they regiter as collateral and to an inflated value. This creates refi vs switch ! We still look at switches as a viable option as is just these 2 who have created the prob. There are still 3 big banks and all the CU's, never mind other mono line lenders which we can still "Switch" ! Good luck on all your choices !
  • MM | 12 Jan 2013, 08:06 AM Agree 0
    Most CU's are collateral as well. Don't be surprised if the rest of the lenders are all collateral in the next 5 years...

    “This is supposed to be a partnership between brokers and lenders.” A lender cannot be profitable paying a Broker 100+ bps upfront and allowing all broker clients to walk away at renewal. A lender makes most of their profits at renewal. If your business model is all about switch transactions, you will be extinct very soon. Believe it or not, the BIG 5 own the entire market and can shut us all out overnight. We need to learn to make both parties profitable if we are going to succeed in growing this channel.
  • MTG | 12 Jan 2013, 08:31 AM Agree 0
    Keep in mind the insurers (GNW I know for sure) will allow a port of their coverage even for TD and BNS collateral charges that have to be switched via a refi transaction meaning LTV's > 80% can be switched (via refi)despite gov't regulations as long as no new funds and existing amortization is maintained. Customer's loose by having to pay legals however many people think there is no solution to move high ratio TD / BNS collateral charges.
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